Nagpur Investment：Hot question!We have collected 8 confusion about ＂Saudi ETF＂

Hot question!We have collected 8 confusion about "Saudi ETF" ...

"Cross -border configuration, is it necessary to consider Saudi Arabia?"

"Why not invest directly but invest in Saudi Arabia through ETF?"

"What is the oil content in Saudi ETF?"

As the first batch of Saudi ETFs in the country is getting closer, everyone is curious about this product with "heat and mystery is equally high".

From the perspective of the existing information, Huatai Berry South East East East Saudi Arabia ETF (QDII) (expanded referred to as "Saudi ETF", subscribing code 520833, transaction code 520830) is mainly through ETF mutual hanging.The East Saudi Arabia ETF to achieve close tracking of the FTSE Saudi Arabia index will be the first to open the door to the Saudi capital market for domestic investors.

What kind of product is this?Is it worthy of a place in our global configuration and combination?This issue allows us to face the most sharp question to unveil the mystery of "Saudi ETF".

Q1: They all say, "A piece of cloth above, I am the richer in the world", how rich is Saudi Arabia?

Saudi Arabia is located in the Arabian Peninsula of West Asia. Although 98%of the land is covered by the desert, it contains extremely rich underground resources and is an important force to support Saudi Arabia's economic development-

The most famous label is "oil country"Nagpur Investment

Saudi Arabia has the world's second largest proven oil reserves, accounting for 17.2%of global reserves. Because oil resources are mostly near the surface, the cost of exploration and drilling is relatively low, and it has strong export competitiveness worldwide.As of 2022, Saudi Arabia's oil revenue accounted for 67.60%of national fiscal revenue, and related industries contributed 38.7%of the GDP, which is the economic life of Saudi Arabia.(Data source: Saudi Arabia Statistics (Gastat), southern Dongying, Energy Institute, Wind, as of 2022/12)

In addition to oil, gold ore resources are equally rich

As of the beginning of 2024, the expected reserves of Saudi Arabia's expected minerals jumped from US $ 13,000 in 2016 to US $ 2.5 trillion, which was nearly doubled, including rare metals such as gold and rare earth, as well as aluminum ore, phosphate and other keyIndustrial minerals.(Data source: Saudi Arabia Industry and Mineral Resources Department, as of 2024/1) Recently, Saudi Arabia has discovered a "world -class gold mine" spread over 125 kilometers, which further consolidated Saudi Arabia's position in the global mineral resources field.

The huge economic interests brought by oil and mineral income have made Saudi Arabia the largest economy in the Middle East and the only Arab country in the 20th Group.In 2022, Saudi Arabia has exceeded 30,000 US dollars for two consecutive years. In 2023, it refreshed a record high of 33,000 US dollars, not only far exceeding the world's average of US $ 13,000, but also ranked first among the countries in the Middle East.In 2024, Saudi Arabia has jumped to 15th.(Data source: Wind, International Monetary Fund Organization)

Q2: Why can't you ignore Saudi Arabia in the global asset allocation?

It is necessary to say more about Saudi Arabia's strategic position in the global pattern.At the same time, Saudi Arabia has become a very attractive investment destination in the Middle East and even globally with its stronger economic growth, young population structure, and potential transformation dividends.

The scarce economic growth, GDP increased by more than 8%

Under the influence of inflation pressure and geopolitical conflict, the current global economic recovery capacity has continued to weaken, while Saudi Arabia's total economic scale has achieved rapid growth, becoming the 17th largest economy in the world.As of 2022, Saudi Arabia's actual GDP reached 769.6 billion US dollars, an increase of 8.7%year -on -year, much higher than other Middle East economies and G20 member states.For the high level since 2012, Saudi Arabia has become one of the major economies of global growth.(Data source: Saudi Arabia Statistics (GASTAT), Economic Cooperation and Development Organization, Southern Dongying, Wind, the above data is as of 2022/12)

The rare population structure, the proportion of population under 30 years of age exceeds 60 %

The superior population structure may make Saudi Arabia's consumption potential significantly higher than that of other people with similar economic capabilities.Statistics show that in 2022, the average age of Saudi Specialty reached 25 years old, and the population of Saudi Arabia under 30 accounted for 63%, and it was slightly higher than emerging markets such as Vietnam and India.(Data source: Saudi Arabia Statistics (Gastat), Vietnam Statistics Administration, The Indian Express official website))

The high -income level of the youthful population structure is conducive to the formation of a larger and vibrant consumer market for Saudi Arabia. It is not only expected to provide a broader development space for emerging industries, but also may promote the continuous prosperity of the Saudi economy.

Full of determination, "2030 Vision" opens huge potential

In order to discover more sustainable growth ways and shape a diverse economic pattern, Saudi Arabia proposed the "2030 Vision" and opened a long -term economic transformation. Since 2016By 26%in 2022, the non -oil industry's contribution to the economy increased its trend as a whole as a whole, and the proportion of GDP in 2023 has reached a higher level of 47.50%.Mining, government services, finance, insurance, real estate and commercial services, product quality tax, wholesale and retail trade, restaurants and hotels such as restaurants, restaurants and hotels have achieved relatively rapid development, industry, mining, renewable energy, digital economy, tourism, etc.Gradually become a new growth point of the Saudi economy, and is constantly releasing more investment opportunities.(Data source: Wind, Saudi Arabia Statistics (GASTAT), Southern Dongying)

Q3: Why invest in Saudi Arabia through ETF?

Because the Saudi capital market is relatively limited, direct investing in the Saudi stock market is not easy for most domestic investors.Although Saudi Arabia has relaxed foreign investment restrictions in recent years, the investment threshold for investment in the Saudi capital market through the "Saudi -Qualified Foreign Investor Program" is still high, and qualified investors are only a few.

Therefore, it is one of the few investment channels for the Saudi ETF to participate in the Saudi Capital market in the country that laid out the Middle East and the Saudi Arabia, and it operates more efficient, convenient and low -cost.

"Saudi ETF" (subscribing code 520833) uses Shanghai -Hong Kong -mounted form to realize the close tracking of the target index. On the one hand, there is no need to open an overseas account, which effectively reduces the complexity of cross -market transactions and save costs. On the other hand, it exceeds 90%of investment.The ETF of the target supports transaction in T+0, which can effectively improve the liquidity of capital.In addition, the mutual hanging model is convenient for managers to use QDII quotas for market transactions, thereby reducing the inconvenience caused by the number of trading days and the differences between time zone.

Q4: What are the ingredients stocks of the target index?What is the index's past performance?

From a representative point of view, the FTSE Saudi Arabia index can be simply understood as the Saudi version of "CSI 300".

This index includes more than 50 large Saudi -large listed companies. The top five major heavy shares include the world's largest Islamic Bank Rage Bank, Saudi Arabia's largest bank, Saudi Arabia, Saudi Arabia, the fourth -largest company in the world, and global.New Energy Leading Enterprises Saudi Arabia International Electric Power and Water, as well as the world -renowned chemical company Saudi Basic Industrial Corporation, are all influential giants in Saudi Arabia and even globally.(Data source: FTSE Russell, as of 2024/5/31, related stocks are only index component stocks, non -stock recommendations, and do not constitute any investment advice)

Figure: The top ten ingredients stocks of the target index

(Data source: FTSE Russell, Wind, as of 2024/5/31. Related stocks are only index component stocks, non -stock recommendations, and do not constitute any investment advice)

Further observe the distribution of the index industry, the FTSE Saudi Arabia index is like the Saudi "dividend index".Finance (41.6%), raw materials (16.9%), energy (9.5%), public utilization (9.2%), and communication (7.7%) are the top five heavy industries, which are very suitable for the economic structure of Saudi Arabia.Balanced scattered.

Figure: The distribution of the target index industry

(Data source: FTSE Russell, as of 2024/5/31)

In terms of long-term performance, in the past 2020, the FTSE Saudi Arabia Index has rewarded as high as 29.91%(time interval 2020/1/1-2024/5/31), and continued to win the FTSE emerging market index, MSCI Asia-Pacific region after 2022,Index and Hang Seng Index.In the three rise in 2020/3-2022/3, 2023/3-2023/9, 2023/10-2024/4, the FTSE Saudi Arabia index rose as much as 77.09%, 8.80%, 17.11%, showing relative relativeA larger and lasting rebound.(Data source: Wind. Index history rising and falling does not represent future performance, and does not constitute a guarantee for fund performance, please pay attention to the risk of fluctuations in the index)

Figure: The main index rises and falls

(Data source: Wind, the interval 2020/1/1-2024/5/31.

(Data source: Wind. Index history rising and falling does not represent future performance, and does not constitute a guarantee for fund performance, please pay attention to the risk of fluctuations in the index)

Q5: Since Saudi Arabia's "rich flowing oil", why is the "oil content" in "Saudi ETF" not high?

From the perspective of the surface industry distribution, finance (41.6%) is the largest weight industry, while the proportion of energy represented by oil and coal is only 9.5%, which is related to Saudi Arabia's economic structure.(Data source: FTSE Russell, as of 2024/5/31)

Petroleum has brought a prosperous economy for Saudi Arabia, which provides natural fertile soil for the development and growth of the financial industry, and the mining and trade of oil and gas resources have been monopolized by a small part of the leading parts. ThereforeIt is the financial industry represented by banks, and public utilities represented by electricity, the proportion of oil -related companies is relatively low.

But from a deeper perspective, crude oil is the most famous label of Saudi Arabia, and finance is the "barometer" of the economy. There is a certain correlation with the trend of the FTSE Saudi Arabia index and the trend of crude oil.The price of major crude oil prices rose, and it showed good toughness and resistance when oil prices fell sharply.

Figure: FTSE Saudi Arabia Index and oil price trend situation

(Data source: Wind, interval 2018/11/27-2024/6/18Pune Investment. The rising and falling of the index does not represent future performance, and it does not constitute a guarantee for fund performance. Please pay attention to the risk of fluctuations in the index).)

Of course, as the Saudi government actively promotes diversified transformation, real estate, renewable energy, mining and other areas with great development potential have achieved relatively rapid development in recent years, and the correlation between Saudi Arabia's economic trends and oil prices may gradually decrease.

Q6: What is the level of dividends and price -earnings ratios in the FTSE Saudi Arabia index in global emerging markets?

As of 2024/5/31, FTSE Saudi Arabia Index P/E ratio is 20.75 times and the dividend level is 3.72%. Compared with the world's major emerging market indexes, the valuation is about medium level.The high -scoring level has a significant advantage under the promotion of high -scoring and dividend, providing investors with a variety of choices for investors' deployment of overseas high dividend assets.

Figure: The main index P / E ratio and dividend rate level

(Data source: Wind, as of 2024/5/31)

Q7: What is Saudi "2030 Vision"?What is the current progress?

The "2030 Vision" is a long -term economic transformation plan released by the Saudi government in 2016. It is hoped that through economic and social and political diversification, it can get rid of the high dependence on the oil industry chain and promote the Saudi economy to achieve sustainable and diverse development.

As of 2023, the planned proportion of "2030 Vision" has been completed and has entered the track of 87%, of which 105 items have achieved the target of 2024-2025 in advance. During the 6 years after the "2030 Vision", the Saudi GDP compound annualizationThe growth rate reached 8.9%, far exceeding 3.9%of the first 6 years before the stage.In terms of "promoting the development of non -petroleum departments" as one of the key goals, breakthroughs have been made -in 2023, Saudi Arabia's non -petroleum economic activity income increased by 11%, accounting for 50%of the actual GDP, which is the highest level in history.(Data Source: Saudi Arabia, Saudi Arabia Economic and Development Affairs Committee)

In the capital market, Saudi Arabia has gradually formed an international attractive investment environment.In recent years, oversized IPOs have stimulated market vitality through oversized IPOs such as the New Future City (NEOM) and Red Sea Energy Storage Project.71 billion Saudi Lial increased by more than 380%.(Source: Saudi Exchange "Monthly Trading and Stock Reports divided by nationality"; Capital Market Management ("CMA"), Saudi Exchange.)

Q8: What are the subscription time and code of the product code?

"Saudi ETF" will start subscription immediately. The subscription time is from June 24 to July 2, 2024. Among them, the date of cash on the Internet is from June 24th to July 2nd. The date of online cash is availableJune 26-July 2nd.

The subscription code is 520833, don't remember the wrong ~~

Risk Tips: Fund has risks and investments need to be cautious.If you need to purchase related fund products, please pay attention to the relevant regulations of investors' appropriateness management, do a good job of risk assessment in advance, and purchase the risk -level fund products that match it according to your own risk tolerance.Fund's past performance does not indicate its future performance. The performance of other funds managed by the fund manager does not constitute the guarantee of fund performance.The Fund can invest in the overseas securities market and will also face special investment risks such as exchange rate risks and the risk of overseas securities markets.Huatai Berry Southern East -British Saudi Arabic Trading Open Index Securities Investment Fund (QDII) (this fund) is fully developed by Huatai Berry Fund Management Co., Ltd.There is no connection between the Fund and the London Stock Exchange Group Corporation and its enterprises (collectively referred to as "LSE Group"), nor do it accept its guarantee, endorsement, sale, or promotion. FTSE Russell is the business name of LSE Group.Fund investment needs to pay attention to investment risks. Please read the fund contract, fund recruitment instructions, and product information summary to understand the specific situation of the fund.

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